Green Building Materials Market Overview:

Global green building materials market size is expected to reach $377,029 million by 2022 from $171,475 million in 2015 with a CAGR of 11.9% from 2016 to 2022. In green building materials market, the materials used are recyclable products, which enhance the production environment and quality of life. These materials promote conservation of non-renewable resources and reduce environmental impact associated with fabrication, processing, installation, transportation, disposal, and recycling of building materials. Green building materials are employed in construction industry to address various environment challenges including anomalous climate change, natural resource depletion, atmospheric pollution, contamination of fresh water resources, and loss of biodiversity. Eco-friendly nature, durability, and energy efficiency of green building materials make them ideal for use in designing of residential and non-residential buildings.

Low operational & maintenance costs and pressure of environmental regulations pertaining emissions are the major factors that drive the green building materials market across the globe. In addition, government in developed countries has introduced policies and incentives to encourage green construction, which supplements the growth of this market. Leadership in Energy and Environmental Design (LEED), Building Research Establishment Environmental Assessment Method (BREEAM), and Green Building Evaluation Labeling (GBEL) are some of the rating systems for green buildings in U.S., UK, and China, respectively. Innovation of new advanced technologies and increase in R&D activities to study effective design procedures and construction techniques will boost the green building materials market demand. Cost concerns and market barriers though hinder the market growth, rise in growth of construction industry provides a great potential for market expansion of green building materials.

Green building materials market is segmented on the basis of product type, application, and geography. Based on product type, the market is categorized into exterior products, interior products, building systems, solar products, and others. Others include structural products and permeable pavement. According to application, the green building materials market is classified into residential buildings and non-residential buildings. Non-residential segment includes commercial & office, institutional, industrial, hospitality, and leisure. Geographic breakdown and deep analysis of each of the aforesaid segments is included for North America, Europe, Asia-Pacific, and LAMEA.

Porter’s Five Forces Analysis:

Green building employs pollution free production technology and low energy manufacturing processes, which helps control expenses and environmental hazards. The demand for raw materials used in green building materials market has increased considerably over the years, whereas the sources from which these raw materials are derived are limited in nature. The raw material differentiation is less in the market. Majority content employed in production of advanced green building materials constitute of tailings, garbage, and waste materials. Switching cost is moderate due to significant number of suppliers in the green construction materials industry. Raw material suppliers have decent distributing networks through which they supply raw materials across the globe. Thus, considering all aforementioned factors and their overall impact, the bargaining power of supplier is average in this market.

Market Dynamics:

Drivers:

Emission Reduction Potential of Green Building Materials

Building and construction sector accounts for more than two-thirds of total greenhouse gas emissions across the globe. Thus, there is a great potential for reducing greenhouse emissions by enhancing the energy efficiency of buildings and communities. Reductions in greenhouse emissions can be accomplished by construction of new green buildings with low energy consumption and retrofitting of existing buildings.

Restraints:

Cost Concerns and Market Barriers

A wide variety of cost concerns and market barriers exist in the green building construction market including “split incentive” barrier, i.e., owners of the houses don’t make effective investments in their properties as the occupants reap benefits from these investments and not owners. A total of 40% of commercial buildings and 32% of households are rented or leased.

Top Winning Strategies

To withstand the competition, the key players in the global green construction materials industry have adopted different key business strategies, such as acquisitions, expansions, product launch, and collaboration. The key market players profiled in this report are green building material manufacturers and suppliers, who serve the product globally to several end-user industries. Data pertaining the market players and their strategic moves are gathered through press releases of respective companies, various blogs available on the website, and primary calls made to the experts in the green construction materials industry.

The green construction materials market research provides a quantitative and qualitative analysis of the current market trends, estimations, and dynamics through 2014&dash;2022, which assist in identifying the prevailing market opportunities in different product and application segments.

Market trends of major countries in each region are mapped according to forecasted green construction materials market revenue.

Top investment pockets which showcase the opportunity in the most lucrative product segment is part of the study.

Focused study of the factors that drive and restrict the growth of green building materials market is provided.

An in-depth analysis of different green building products within the market is provided with key factors that highlight the market behavior, and analyses green building materials market share by type, application and region.

Key manufactures of green building material are profiled and their recent developments are listed.

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Environmental concerns and focus on sustainable infrastructure drives the development of green building constructions in both residential and non-residential sector. The penetration of green buildings in the residential sector is lower as compared to the non-residential due to low awareness about the benefits of green building and high cost of green building materials. Emission reduction potential of green building materials and decrease in operating costs are the major factors that drive the green building materials market across the globe. New imitation slate materials are introduced in the market, which offer elongated lifespan to roofs than asphalt or other singles and are available at a very low cost compared to original slate. These imitation materials are produced using 100% re-engineered and recycled materials including cellulose and rubber. Recycled-content decking materials are increasingly replacing pressure treated pine, cedar, and old-growth redwood in all non-structural deck applications as they offer cost savings and improved durability as compared to wood. In addition, these materials do not crack, rot, do not require staining, and are not treated with toxic chemicals.

Acceptance of energy efficient products is greater in residential buildings sector due to existence of split incentive barrier in non-residential buildings sector. Increase in partnerships between state government and homebuilder associations to build and sell green buildings will result in increased demand for green buildings materials in the residential sector.

Environment regulations helped green building materials market to flourish in emerging economies, such as India and China, especially in the commercial sector. Singapore emerged as a green building model for developers and planners across Asia-Pacific region by incorporating sun-shading exteriors, computer modelling of energy flows & carbon emissions, water-efficient fittings, and highly efficient HVAC systems in their building structures.